FORT WORTH, Texas, Aug. 21, 2017 /PRNewswire/ -- Southwest
Bank, as Trustee of the Hugoton Royalty Trust (NYSE:HGT) (the "Trust"), today declared a cash distribution to the holders of its
units of beneficial interest of $0.006092 per unit, payable on September 15,
2017, to unitholders of record on August 31, 2017. The following table shows underlying gas
sales and average prices attributable to the net overriding royalty for both the current month and prior month. Underlying
gas sales volumes attributable to the current month were primarily produced in June.
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Underlying Gas Sales
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Volumes (Mcf) (a)
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Average Gas
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Total
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Daily
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Price per Mcf
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Current Month
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1,186,000
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40,000
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$2.78
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Prior Month
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1,191,000
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38,000
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$2.85
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(a)
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Sales volumes are recorded in the month the Trust receives the related net
profits income. Because of this, sales volumes may fluctuate from month to month based on the timing of cash
receipts.
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XTO Energy has advised the Trustee that it has deducted budgeted development costs of $280,000,
production expense of $1,400,000, overhead of $988,000 and recovered
excess costs of $244,000 in determining the royalty payment to the Trust for the current month.
Development Costs
XTO Energy has advised the Trustee that due to increased non-operated development activity on properties underlying the
Oklahoma net profits interests, it increased the monthly development cost deduction from
$200,000 to $280,000 beginning with the August
2017 distribution. The monthly deduction is based on the current level of development expenditures, budgeted future
development costs and cumulative actual costs under or over the previous deductions. XTO Energy has advised the Trustee
that the development cost deduction will continue to be evaluated and revised as necessary.
Excess Costs
XTO Energy has advised the Trustee that improved gas prices in relation to costs resulted in the partial recovery of excess
costs of $40,000 on properties underlying the Kansas net profits
interests. However, after the partial recovery there were no remaining proceeds from properties underlying the Kansas net profits interests to be included in the current month's distribution. Underlying cumulative
excess costs remaining on the Kansas net profits interests after the current month's
distribution totaled $990,000, including accrued interest of $99,000.
XTO Energy has advised the Trustee that improved gas prices in relation to costs resulted in the partial recovery of excess
costs of $203,000 on properties underlying the Wyoming net profits
interests. However, after the partial recovery there were no remaining proceeds from properties underlying the Wyoming net profits interests to be included in the current month's distribution. Underlying cumulative
excess costs remaining on the Wyoming net profits interests after the current month's
distribution totaled $265,000, including accrued interest of $71,000.
For more information on the Trust, please visit our web site at www.hgt-hugoton.com .
Statements made in this press release regarding future events or conditions are forward looking statements. Actual
future results, including development costs and future net profits, could differ materially due to changes in natural gas prices
and other economic conditions affecting the gas industry and other factors described in Part I, Item 1A of the Trust's Annual
Report on Form 10-K for the year ended December 31, 2016.
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SOURCE Hugoton Royalty Trust